• Source:JND
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As Trump's additional 25 per cent tariffs kick in, the Union Commerce Ministry on Thursday revealed that the government is trying to expedite the process to roll out the export promotion mission (EPM) to help the exporters. Reacting to the tariffs, the ministry said that the exports will be hit in the short term, but it will not be a long term loss.

The minister said, "It is an understood thing that 50% tariffs are going to impact trade. There will be an impact on the textile, chemicals and machinery sectors in the short run, but it will not be a very long-term loss. The industry is worried; they have been sending representations. The industry has pointed out that in the short run, their orders will face a slowdown, and they will face a liquidity crunch."

The Ministry said that the exporters have sought help on the liquidity front, and the government is addressing the demands. 

"We are trying to expedite the rollout of the Export Promotion Mission (EPM) as soon as possible, so that it will give some impetus and support to the industry", the ministry added.

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The ministry further said, "Export diversification, new free trade agreements, rollout of export promotion mission and growing domestic market will help provide cushion to Indian exporters from the impact of US tariffs".

BTA not significant if additional tariffs in place: Commerce Ministry

On the progress in the bilateral trade agreement (BTA) with the United States, the ministry said that it is not being negotiated currently, as it will require addressing the additional 25 per cent tariff.

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"Engagement between the two countries is going on. We have been progressing well and hope to return to the table soon. We may not be negotiating the (BTA) agreement right now, because negotiating the agreement will entail that the additional 25% tariffs need to be addressed. Even if you do a trade deal and the additional tariffs are in place, it will not have a significant impact on exports."

(With inputs from agencies)